Fiscal Deficit for the Financial Year 2021-22 is estimated at 6.8 per cent in BE 2021-22. This was stated by Shri Anurag Singh Thakur, Union Minister of State for Finance & Corporate Affairs, in a written reply to a question in Rajya Sabha today.

The Minister stated that the restructured fiscal consolidation path aims Government of India Fiscal Deficit reaching below 4.5 per cent of Gross Domestic Product (GDP) by 2025-2026.

The Minister further stated that in respect of action to stabilise GDP, Government announced a special economic and comprehensive package, which included Pradhan Mantri Garib Kalyan Yojana (PMGKY), and three Atmanirbhar Bharat packages. In Union Budget 2021-22, Government announced number of measures to support broad-based and inclusive economic development under six pillars such as Health and Wellbeing; Physical and Financial capital, and infrastructure; Inclusive Development for aspirational India; Reinvigorating Human Capital; Innovation and R&D; and Minimum Government & Maximum Governance to facilitate fiscal consolidation and stabilization of GDP.

Fiscal consolidation target to lower fiscal deficit through special stimulus packages and budgetary pillars supporting GDP stabilisation. Fiscal management sets an estimated fiscal deficit for 2021-22 and articulates a fiscal consolidation path targeting a reduction of the fiscal deficit below 4.5% of GDP by 2025-26. To stabilise GDP and support that path, the Government announced a special economic and comprehensive package including PMGKY and three Atmanirbhar Bharat packages, and Budget 2021-22 measures under six pillars-Health and Wellbeing; Physical and Financial Capital and Infrastructure; Inclusive Development; Human Capital; Innovation and R&D; and Minimum Government & Maximum Governance.